ROI through value, not volume, healthcare
By: Shainoor Khoja
Shainoor Khoja, a serial entrepreneur, says we live in a world that has immense wealth juxtaposed with as many serious social, environmental and financial issues that need resolving.
Impact investments provide for many an opportunity to ‘do good and do well,’ which is appealing to the new generation of leaders, investors and consumers.
An increasing number of companies are seeking to offer products and services through innovative business models that deliver financial, environmental and social ROIs, and create positive social impact at scale.
At Foundation Holdings, we are focused on spearheading its ‘Value healthcare’ platform, where the central issue is a social impact that brings us together. We are looking at how to design, fund and structure organizations that generate both a financial and social return, in middle-market companies across India and the GCC.
Value healthcare globally
In the healthcare industry, old ways of doing business are becoming obsolete. Healthcare ought to be driven by a relentless focus on delivering outcomes that truly matter to patients and to society in a financially sustainable manner.
But this is hard to do and hard to manage when the patient outcomes we should deliver are not clearly defined. Costs are also increasing unsustainably with a significant fraction of healthcare spending wasted on low-value diagnostic procedures or treatments and on the consequences of poor clinical evaluations.
The World Bank estimates global population sizes of approximately 8.5 billion by 2030 and 9.2 billion by 2040. The United States and United Kingdom spent approximately 17.1 per cent and 9.1 per cent of their GDP on healthcare respectively.
Similar trends are being seen in the GCC and especially in Saudi Arabia and UAE.
Yet, the approach to healthcare delivery in most markets remains focused on volume and process guidelines rather than true value for patients.
GCC value-based healthcare
We have seen the UAE become a fast-paced metropolis, giving rise to a large and diverse expatriate population of more than 200 nationalities. This has resulted in significant expansion of blue-collar workers.
The provision of medicine in the region has also grown rapidly, but always with a strong focus on the high-income bracket, leaving a gap in the market.
The opportunity is to enhance the existing healthcare system within the value healthcare segment.
The concept of value encapsulates excellence, relevance, results, cost, care and compassion on every dimension from the facilities, to the processes, the healthcare professionals, administrators, support staff, patients, their employers and the insurers.
The value-based healthcare sector is in need of transformation.
Consolidation, collaboration, integration of the value chain and utilizing technology in the sector is what we expect to see in the coming 5 years.
Healthcare at the core
Nearly 50 per cent of all economic growth in the last 200 years can be traced either to medical research or health.
As per a Milken Institute research, it is reported that it took 4 million years to extend life expectancy by 11 years and the last 14 years on this planet, we’ve extended life expectancy by 39 years, which is an amazing feat.
We’ve overcome many life-threatening diseases, and we have solutions today for 500-600 life-threatening diseases out of, maybe, 7,000.
We are now entering the Golden Age of healthcare.
The Impact on society
Currently the access to, and cost of, quality healthcare remains a key problem for the working population segment. This is a perpetual cycle that keeps people from investing in better care, better education, up-skilling and achieving a better quality of life.
For me personally this is the ultimate impact driver – to see the working population prosper alongside the rest of us.
“Our culture is one of care, compassion and understanding towards our patients and colleagues. We are here to be the partner of choice for this segment and to create a platform for change and impact.”
Mrs. Khoja is the Founder & CEO of Better Business Enterprise Ltd (BBE), a consulting company that drives impact through designing innovative sustainable solutions to address the needs of base of the pyramid populations. Khoja also spearheads Foundation Holdings’ Value healthcare platform